|
|
Perhaps the biggest cloud on the horizon during 2009 was the global economic downturn. For some companies, this proved a major setback. Austral Pacific had been active in New Zealand for many years in various guises, but eventually ceased operations. Discovery Geo relinquished its permit in offshore Cook Strait, while retaining its onshore Wairarapa permit. Widespread Energy, Hugh Green and Greengate Petroleum have all been badly affected, mainly because it is an almost impossible time to attract partners to farm-in to frontier exploration projects. Most local established companies have managed to keep operating at various levels and, for some, the future does not look quite so bleak, while those with significant revenue from production are positively booming. These are in a very good position to make new discoveries in time to capitalise from a future rise in demand as the world’s economies wake up and start to wonder what hit them! In fact, when taken in sum, it becomes apparent that a considerable investment is being made by exploration companies in New Zealand’s oil and gas business. David Bennett, one of the original movers behind Austral, started a new company, Kea Petroleum. Kea has exploration permits in the East Coast Basin and has applied for an offshore permit in south Taranaki. L&M consolidated its coal seam gas and traditional exploration programmes and is planning more wells in Southland. Greymouth Petroleum is working hard to extract as much oil and gas as possible from nine operated fields in onshore Taranaki and taking its first steps into offshore Taranaki and the nearshore margin of the Great South Basin. Greymouth acquired new seismic data from both areas during the last acquisition season. Todd Petroleum has for many years been amassing profits from Maui and Kapuni gas, condensate and oil production and is now gaining confidence in operating independently, while continuing with their previously successful strategy, this time as 10 percent minority partner in a large permit in the Great South Basin, to Exxon/Mobil’s 90 percent majority. Todd is increasingly using 3D seismic to reduce exploration risk and a small 3D survey across the Karewa-1 gas discovery in offshore Northern Taranaki resulted in an application for a mining licence. Meanwhile in offshore southern Taranaki, a large 3D survey across the Matariki and other leads is planned for the coming season. New Zealand Oil and Gas (NZOG) has profited greatly from production at the Tui cluster and is now gearing up for some serious exploration having acquired new 2D seismic data in offshore Taranaki. Australian companies have been very active. AWE acquired a large volume of new 2D data during the last seismic season in readiness for a large drilling campaign due to start near the end of 2009. AWE also acquired some new 2D seismic from its Barque prospect in offshore Canterbury. AWE plans to drill four wells in Taranaki over the 2009/2010 summer using the Kan Tan IV semi-submersible rig. The first well to be drilled was the Hoki-1 at the Taranaki shelf edge. Tane-1 was drilled by Shell, BP and Todd in 1976 and subsequently proved to be drilled out of closure, or at least well down dip of the structural closure which culminates 12 kilometres to the northwest of Tane-1. Two step-out wells are to be drilled near the Tui oil field cluster and one well, Tuatara-1, west of D’Urville Island in Marlborough. Origin has been making a major effort to bring Kupe South on line and first gas is expected soon. Origin is also planning to drill two wells in Northland this summer and has acquired a large 3D survey across its Carrack and Caravel structure in offshore Canterbury, where a drilling commitment in one of Origin’s two permits is due next June. Westech of Denver, Colorado is maintaining its onshore Hawkes Bay licence in the East Coast Basin and is planning to drill its Albacore Prospect in offshore Taranaki in partnership with NZOG this summer using the Ensco 107 jack-up rig which has been drilling the development wells for the Maari and Manaia oil fields in southern Taranaki. This OMV operated venture started production earlier this year and is adding some 40,000 barrels of oil a day to New Zealand’s export figures. Maari has now exceeded Pohokura and Tui as our largest oil field with an estimated 100 million barrels of reserves. OMV now have a broad mix of interests in New Zealand, including partnership in Maui and Pohokura, while Maari now makes them New Zealand’s largest producer. The large Vulcan and Hestia structure below the upper Taranaki slope were investigated with new seismic data in 2007 and a drilling commitment is due for the permit is July 2010. In the Great South Basin, OMV adopted a thorough approach to exploration of their three permits, acquiring around 15,000 kilometres of new 2D seismic data. OMV has drilling commitments to make there next year, too. ExxonMobil’s decision to postpone its drilling commitment, due this October, for a further 12 months is a little disappointing, but the ways of the super-majors are manifold and various and are not likely to reflect badly upon the geological potential of the Great South Basin, probably not even on the corner of the 9000 square kilometre permit covered by its 1500 square kilometre 3D seismic survey. New Zealand is remote from markets, ExxonMobil has a number of opportunities and must rank them. In times when the oil price is high, a lot of sins may be forgiven, but when margins are being challenged, the extra cost of transport may make a significant difference. In Deepwater Taranaki, Global has been forging ahead, having acquired 3400 kilometres of new 2D. The seismic data has been interpreted and prospects are being worked up for drilling. Hyundai HYSCO, a new entrant into oil and gas exploration has a 30 percent interest and AWE farmed-in earlier this year for 10 percent. Global is willing to consider additional partners participate in the first well in this newly-defined extension to the producing Taranaki Basin. A well commitment is due in April 2010, which would tie in nicely with wells that may be drilled in the Great South Basin and/or Canterbury. Meanwhile, Crown Minerals, New Zealand’s regulatory body) and GNS Science (New Zealand’s answer to Geoscience Australia) are both involved in promoting frontier regions, which were recently recognised as prospective sedimentary basins. The 2007 2D reconnaissance of the Raukumara Basin showed a large, thick sedimentary accumulation, where potential oil-prone source rocks are at exactly the right depth to be expelling oil today. A range of trapping structure has been identified and many are supported by direct hydrocarbon indicators (DHIs). A licencing round closes at the end of January 2010 and two large blocks are offered, covering a total area of more than 17,000 square kilometres. Meanwhile, a large part of the Northland Basin was gazetted, initially closing at the same time, but the opportunity arose to reconnoitre the northwest extension of the basin, the Reinga Basin and the closing date was postponed until August 2010. The 5400 kilometre survey is a joint venture 2D seismic grid acquired by CGGVeritas and the Crown Minerals group. The new 2009 survey effectively doubled the size of the basin and showed a large volume of mature sediments and a number of play types. Six blocks are offered with a total area of more than 38,000 square kilometres. The Bergen Resolution seismic vessel run by a new Singaporean company Reflect Seismic, has recently started a 3000 kilometre 2D survey across a third newly recognised sedimentary accumulation, the Pegasus Basin just to the east of Cook Strait. On completing the Pegasus survey, the vessel is due to continue across the Bounty Trough to survey the eastern unlicenced part of the Great South Basin. Reconnaissance lines are also planned for the Bellona Basin, the outer Taranaki Basin and the Northland Slope Basin. The intention of this new reconnaissance work is to put New Zealand firmly on the radar screen of substantial exploration companies. The National government sees the oil and gas industry as a wealth creator for the country, and why not? After all, New Zealand’s marine territories now amount to mote than seven million square kilometres, making us almost the size of Australia. We are really another continent not a small island nation and we should not be surprised to discover that we have continent-scale resources.
Energy NZ Vol.4 No.1 Energy Perspectives 2010 |
In a year when oil was New Zealand’s third most valuable export commodity, our oil and gas industry suffered mixed fortunes. By Chris Uruski, exploration geophysicist at GNS Science.